DAIRY PRODUCE MARKET.

Taranaki Daily News, 17 January 1922, Page 4

DAIRY PRODUCE MARKET.

The butter market, whieh collapsed so ..suddenly a week or two ago, is already showing signs of recovery as the result of the liquidation of the Government stocks, and, though the prices now quoted do not offer dairymen a profitable return for their labor and investment, they are a distinct improvement on those obtaining but a few days ago. The dairyman also has the satisfaction of knowing that prices have touched bottom, and that there is every likelihood of the number of consumers of butter being considerably enlarged as the result of the sale of cheap butter. During recent years the cost of butter has played into the hands of the margarine companies, who have greatly improved the article, which, however, cannot be compared with first-class -butter. If the people can buy butter at a reasonable price they will use it in preference to margarine, as is proved by what is going on at. Home at the present time. Still butter at a retail price at Ebme of 1/3 per lb is not a payable proposition to the New Zealand dairyman, at any rate with costs as high as they are to-day. He wants to net at least 1/6 per lb 'butter-fat, and if he cannot get the return from butter he will naturally turn—as all who could have turned lately—to cheese, which, though down somewhat at the moment, gives promise of a fair return for the season. The news from Home and abroad generally is good, all pointing to fuller employment and better times, which means a greater demand for all our products. The world generally seems to be settling down after the great upheaval and the subsequent period of hectic prosperity, and learning the great lessons of mutual interdependence and the exercise of industry and thrift. In Taranaki though the markets have been depressed the season has been an exceptionally favorable and prolific one, which will serve to ease the burden the low prices for produce have imposed upon producers. That we have passed the worst so far as these prices are concerned seems to be certain, and we have every reason to suppose they will steadily improve from now onward until they reach stability.